Transforming Yangon

A row of rickety rubbish carts stands below an imposing building under construction in Yangon, the commercial, industrial and financial centre of Myanmar.

The city’s population of about 5 million is expected to double by 2040, reflecting the rapid urbanisation of a largely rural country. But even as Yangon lures thousands of underemployed villagers with the prospect of jobs, shaky infrastructure makes it ill-prepared to receive them.

5 Sep 2013. YANGON, Myanmar. REUTERS/Soe Zeya Tun

Toe Aung, a former army major, is the man who almost by accident bears one of the biggest responsibilities in reform-era Myanmar: planning Yangon's transformation into Southeast Asia's next megacity.

As deputy head of urban planning, a department which didn't exist until he set it up in 2011, Toe Aung's task is unenviable. With its power shortages, floods, traffic jams, pollution and slums, Yangon is a mouldering testament to nearly half a century of economic stagnation under military dictatorship.

"So many problems," mused Toe Aung. "Which should be prioritised?"

Some answers lie - at least on paper - in the Yangon Master Plan, a 852-page study drafted with funds and expertise from the Japan International Cooperation Agency (JICA), which oversees Japan's aid to developing countries. It is due to be finalised in December, amid fears the city's soaring land prices are scaring off foreign investors.

6 Sep 2013. YANGON, Myanmar. REUTERS/Soe Zeya Tun

Yangon lost its status as Myanmar's capital in 2005, after the former military junta carved a new seat of government from a parched wilderness some 380 km (236 miles) to the north.

But the city remains Myanmar's economic centre, and the site of the country's main ports, making it the most obvious location for export-oriented manufacturing. It is also the main tourist gateway, with visitor arrivals surging since a quasi-civilian government took office in 2011.

In short, Myanmar's reform-era economy depends upon the fortunes of its biggest city.

6 Sep 2013. YANGON, Myanmar. REUTERS/Soe Zeya Tun

Yangon's biggest problem is one the former junta had trouble even acknowledging, never mind tackling: widespread urban poverty. At least 40 percent of its residents are "poor or extremely poor", said the United Nations housing agency UN-HABITAT.

A fast-growing population is also heaping pressure on already overburdened health and educational systems. Many families can't afford to send their children even to government schools, where supplies and various fees can cost up to 50,000 kyat ($50) a month - a huge sum when the average Myanmar salary is only a few dollars a day.

3 Jul 2013. YANGON, Myanmar. REUTERS/Soe Zeya Tun

During decades of military-imposed isolation, Yangon boasted fresh air and sleepy roads. Not anymore. The easing of government restrictions on car imports in 2011 led to a surge of vehicles on Yangon's narrow and rutted streets. The city centre is often gridlocked and thick with exhaust fumes.

At least 80 percent of Yangon commuters rely on antiquated buses that honk and jostle in the streets, and are overcrowded even outside peak hours.

In the face of severe infrastructure problems, and with limited funds, deputy head of urban planning Toe Aung still hopes to achieve great things.

"My dream is to make Yangon a model of urban development," he said.

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6 Sep 2013. YANGON, Myanmar. REUTERS/Soe Zeya Tun

The illuminated Sule Pagoda stands out amongst other buildings in central Yangon.